HOUSE BILL No. 6550


     December 3, 2002, Introduced by Rep. Kooiman and referred to the Committee on Tax Policy.


        A bill to amend 1975 PA 228, entitled

   "Single business tax act,"

   (MCL 208.1 to 208.145) by adding section 39f.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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             SEC. 39F.  (1) FOR TAX YEARS THAT BEGIN AFTER DECEMBER 31,

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        2002, A TAXPAYER MAY CLAIM A CREDIT OF UP TO 20% OF THE AMOUNT

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        PAID IN THE TAX YEAR TO PURCHASE AND INSTALL MACHINERY AND EQUIP-

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        MENT USED EXCLUSIVELY IN OR ON THE PREMISES OF A MANUFACTURING

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        FACILITY IN THIS STATE THAT IS THE TAXPAYER'S PLACE OF BUSINESS

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        AND THAT IS USED TO MANUFACTURE, PROCESS, COMPOUND, OR PRODUCE

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        ITEMS OF TANGIBLE PERSONAL PROPERTY FROM RECYCLABLE MATERIALS FOR

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        SALE OR TO PROCESS POSTCONSUMER WASTE MATERIAL USED EXCLUSIVELY

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        TO PRODUCE FINISHED PRODUCTS.






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             (2) TO QUALIFY FOR THE CREDIT ALLOWED UNDER THIS SECTION,

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        THE TAXPAYER SHALL SUBMIT ALL OF THE FOLLOWING WITH THE ANNUAL

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        RETURN REQUIRED BY THIS ACT ON WHICH THE CREDIT IS CLAIMED:

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             (A) CERTIFICATION FROM THE DEPARTMENT OF ENVIRONMENTAL QUAL-

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        ITY THAT THE MACHINERY AND EQUIPMENT PURCHASED OR INSTALLED ARE

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        INTEGRAL TO THE RECYCLING PROCESS.

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             (B) DOCUMENTATION OF THE COST PAID FOR THE MACHINERY OR

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        EQUIPMENT AND FOR THE INSTALLATION OF THE MACHINERY OR

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        EQUIPMENT.

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             (3) IF THE TOTAL CREDIT ALLOWED UNDER THIS SECTION FOR THE

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        TAX YEAR AND ANY UNUSED CARRYFORWARD OF THE CREDIT ALLOWED BY

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        THIS SECTION EXCEED THE TAXPAYER'S TAX LIABILITY FOR THE TAX

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        YEAR, THAT PORTION THAT EXCEEDS THE TAX LIABILITY FOR THE TAX

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        YEAR SHALL NOT BE REFUNDED BUT MAY BE CARRIED FORWARD TO OFFSET

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        TAX LIABILITY IN SUBSEQUENT TAX YEARS FOR 10 YEARS OR UNTIL USED

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        UP, WHICHEVER OCCURS FIRST.

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             (4) AS USED IN THIS SECTION:

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             (A) "MANUFACTURING FACILITY" MEANS BUILDINGS AND STRUCTURES

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        THE PRIMARY PURPOSE OF WHICH IS EITHER OF THE FOLLOWING:

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             (i) THE MANUFACTURE OF GOODS OR MATERIALS OR THE PROCESSING

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        OF GOODS AND MATERIALS BY PHYSICAL OR CHEMICAL CHANGE.

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             (ii) RESEARCH AND DEVELOPMENT LABORATORIES OF COMPANIES

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        WHETHER OR NOT THE COMPANY MANUFACTURES THE PRODUCTS DEVELOPED

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        FROM THEIR RESEARCH ACTIVITIES IF THE RESEARCH ACTIVITIES ARE

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        RELATED SOLELY TO THE MANUFACTURE, PROCESSING, COMPOUNDING, OR

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        PRODUCTION OF ITEMS OF TANGIBLE PERSONAL PROPERTY FROM RECYCLABLE





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        MATERIALS OR TO PROCESSING POSTCONSUMER WASTE MATERIAL USED

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        EXCLUSIVELY TO PRODUCE FINISHED PRODUCTS.

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             (B) "RECYCLABLE MATERIALS" MEANS ANY PRODUCT GENERATED BY A

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        TAXPAYER THAT HAS SERVED ITS INTENDED END USE AND THAT HAS BEEN

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        SEPARATED FROM SOLID WASTE FOR THE PURPOSE OF COLLECTION, MARKET-

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        ING, AND DISPOSITION AND THAT DOES NOT INCLUDE DEMOLITION WASTE

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        OR MORE THAN 15% SECONDARY WASTE MATERIAL OR DEMOLITION WASTE.

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             (C) "SECONDARY WASTE MATERIAL" MEANS WASTE MATERIAL GENER-

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        ATED AFTER THE COMPLETION OF A MANUFACTURING PROCESS.






































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